Friday October 15, 8:40 am Eastern Time
Wheaton River Q3 results
(Full text of press release from Canadian Corporate News)
OCTOBER 15, 1999
Wheaton River Minerals Reports Record Profits
TORONTO, ONTARIO--Wheaton River Minerals Ltd. is pleased to report that the Company, in spite of recent
record low gold prices, achieved its best financial performance ever during the first nine months to September 30,
1999. Net earnings were $8,408,530 or $0.21 per share for the 1999 period, or an increase of 277% over the
net earnings of $2,228,615 or $0.06 per share for the same period of 1998. Cash flow from operations rose by
25% to $11,654,133 or $0.29 per share during the first nine months of 1999, compared with $9,298,574 or
$0.24 per share during the same period of 1998. Sales were $32,017,374, and earnings from mining operations
were $11,535,601 for the nine-month period in 1999, compared with $15,163,776 and $3,793,736 respectively
in the 1998 period. Wheaton River ended the quarter with a cash balance of $11,756,730.
Gold sales from the Company's Golden Bear Mine reached a record 67,900 ounces in the first nine months of
1999 or an increase of 32,800 ounces over the comparable 1998 period. By the end of the 1999 production
season in October, more than 70,000 ounces of gold will be produced.
Selected Financial Data
1999 1998 1999 1998
(000's) (000's) Per Share Nine Months Ended September 30
Sales $32,017 $15,164 $0.79 $0.39
Earnings from mining operations $11,536 $3,794 $0.28 $0.10
Net earnings $8,409 $2,229 $0.21 $0.06
Cash from operating activities $11,654 $9,299 $0.29 $0.24
At September 30
Cash $11,757 $10,096 $0.29 $0.25 Working capital $15,146 $10,314 $0.38 $0.25 Net assets $25,101
$17,245 $0.63 $0.42
Gold sales from the Golden Bear Mine in northwestern British Columbia exceeded feasibility study projections for
the third year in a row. The increased production resulted from mining better than predicted grade and ore
tonnage in the Ursa open pit, where 390,000 tonnes grading 5.65 grams gold per tonne were mined, crushed and
stacked on the Totem Creek heap leach pad. This is up from the estimated 325,000 tonnes grading 5.25 grams
gold per tonne in the original feasibility study. Gold recoveries from ore produced from the Kodiak A deposit
stacked on both the Totem Creek and Fleece Bowl leach pads also exceeded feasibility estimates and contributed
to the improved results. Total cash costs for the nine months to September 30, 1999 were US$159 per ounce
compared with US$149 per ounce during the first nine months of 1998. As anticipated, the higher waste stripping
ratio in the Ursa pit led to higher mining costs in 1999. Realized selling prices achieved for gold sales in the first
nine months were US$318 per ounce in 1999 and US$287 per ounce in 1998.
Wheaton River announced in September that the Costa Rican Ministry of Environment and Energy, Technical and
Environmental Branch (SETENA) has acknowledged that the current Environmental Impact Assessment (EIA)
covering the Company's Bellavista gold project is in good standing, alleviating the need to apply for another one
as previously thought. The SETENA is reviewing the Company's new environmental management plan, which was
recently submitted. This development paves the way for construction of the project, which is anticipated to
produce 63,000 ounces of gold annually, to begin next year. Wheaton River is in discussions with financial
institutions regarding financing for the Bellavista project.
Kit Resources Ltd. entered into an option agreement with Kinross Gold Corporation covering the George Lake
gold project in the Nunavut Territory. Kinross can earn a 70% interest in the project by spending $20 million over
a 5-year period. A minimum $2 million drilling program is slated to begin in early 2000. The George Lake project
hosts an indicated resource of 4,238,000 tonnes grading 9.80 grams of gold per tonne, and an additional inferred
resource of 2,222,000 tonnes grading 9.69 grams gold/tonne. Wheaton River owns 23% of the outstanding
shares of Kit.
Wheaton River purchased 1,432,500 of its own common shares for cancellation under a Normal Course Issuer
Bid during the one-year period preceding September 14, 1999, for an average price of $0.22 per share. The
Toronto Stock Exchange has approved another Normal Course Issuer Bid for one year beginning September 29,
1999. During the period, Wheaton River may purchase up to 2,019,675 of its own common shares. There were
40,393,507 common shares outstanding on September 30, 1999. The Company believes its common shares have
been and are trading in a price range that does not reflect their value in relation to Wheaton River's business and
its future business prospects.
The recent rise in gold prices has caused some concern among the investment community about the exposure of
gold mining companies to margin calls resulting from their hedge positions. Wheaton River is pleased to report that
it has only recently sold forward most of its 2000 production and half of its 2001 production. The average price
on these hedges is over US$300 per ounce. Its hedge position remains well within its current margin limits and
additional limits are obtainable if necessary. This hedge covers less than 15% of the company's proven and
probable recoverable reserves.
As previously reported with respect to the Year 2000 issue, the Company has assessed its internal software and
hardware systems and believes all systems are ready for the year 2000. Most key suppliers have indicated that
they have dealt, or they will shortly deal, with their year 2000 issues.
Wheaton River believes that with the well-publicized announcements regarding limits on gold sales and leasing by
the European banks, the worst of the bear market in gold prices is now behind us. The Company is committed to
a program of growth with a focus on acquiring and developing mid-sized gold deposits which can produce for
total cash costs of US$200 per ounce or less, and is currently evaluating several potential acquisitions.
FOR FURTHER INFORMATION PLEASE CONTACT:
Wheaton River Minerals Ltd.
Ian J. McDonald
Chairman and Chief Executive Officer
(416)860-0919
or
Kerry J. Knoll
Vice-President, Investor Relations
(416)860-0919 |
